Whatever venture it is that you might like to get into, it is always best to learn some terms that are used.
This makes sure that you avoid any confusion and that you are more aware about the things that are being discusses.
If you are interested in stock index trading, then be ready to add a whole slew of words into your vocabulary because you will indeed be learning a lot of new words.
There is no getting around the need to learn new terms; you must know at least some of the words that are used.
One word or term that you will have to know is AIM or the Alternative Investment Market.
This is the official Stock Exchange market for those investors who are seeking some investment chances albeit in smaller but usually riskier entities.
This is not available as a sort of CFD.
What is a CFD? This CFD stands for Contract for Difference which is the derivative product which gets traded.
This is where profits are made from the differences in the prices of all stocks and all shares.
CFDs are very popular as a trading product.
This is because they are traded on a leverage that is usually 10 is to 1.
Next term is Bear.
This is not the cuddly kind that you find in the forest but in stock index trading terminology, this is a person, particularly an investor, who acts negatively towards the shares in the belief that prices will go on a downward spiral.
A Bear market on the other hand is the type of market wherein share prices are usually falling all the time.
When you have the Bear, you will also have the Bull.
Once again, this does not mean the feisty four-legged animal but an investor who has a very positive attitude towards the market and one who always believes that the market prices will go up.
Also, as opposes to the Bear market, there is also the Bull market and has the opposite attitude towards the prices that the Bear market has.
They are like the yin and the yang of stock index trading actually.